Spotify Technology S.A. (NYSE: SPOT) stock jumped 1.61% on Friday to $122.40 against a previous-day closing price of $120.46. With 1.46 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.26 million shares. During the session, the Internet Content & Information company that operates in wider Communication Services sector, reached to the highest price of $124.63 whereas the lowest price it dropped to was $120.10. The 52-week range on SPOT shows that it touched its highest point at $305.60 and its lowest point at $89.03 during that stretch. It currently has a 1-year price target of $141.43. Beta for the stock currently stands at 1.84.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SPOT was up-trending over the past week, with a rise of 6.82%, but this was up by 18.99% over a month. Three-month performance surged to 8.75% while six-month performance fell -36.22%. The stock lost -43.70% in the past year, while it has lost -47.70% so far this year. A look at the trailing 12-month EPS for SPOT yields 0.37 with Next year EPS estimates of 0.19. For the next quarter, that number is -0.19. This implies an EPS growth rate of 94.30% for this year and 129.00% for next year.
Float and Shares Shorts:
At present, 192.95 million SPOT shares are outstanding with a float of 140.68 million shares on hand for trading. On Jul 14, 2022, short shares totaled 3.85 million, which was 2.00% higher than short shares on Jun 14, 2022. In addition to Mr. Daniel G. Ek as the firm’s Founder, CEO & Chairman, Mr. Sven Martin Lorentzon serves as its Co-Founder & Director.
Through their ownership of 56.28% of SPOT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 27.72% of SPOT, in contrast to 26.02% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in SPOT with 12.04% of the stake, Baillie Gifford & Co. holds 23,228,574 shares worth 23,228,574. A second-largest stockholder of SPOT, T. Rowe Price Associates, Inc., holds 15,947,931 shares, controlling over 8.27% of the firm’s shares. Morgan Stanley Investment Managem is the third largest shareholder in SPOT, holding 8,121,452 shares or 4.21% stake. With a 3.44% stake in SPOT, the Vanguard International Growth Fun is the largest stakeholder. A total of 6,626,955 shares are owned by the mutual fund manager. The T Rowe Price Growth Stock Fund, which owns about 1.51% of SPOT stock, is the second-largest Mutual Fund holder. It holds 2,905,930 shares valued at 272.66 million. Morgan Stanley Invt. Fds. – Globa holds 1.14% of the stake in SPOT, owning 2,195,084 shares worth 205.96 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SPOT since 30 analysts follow the stock currently. There are 12 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 14 believe that the stock is worth HOLDING, 4 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With SPOT analysts setting a high price target of $227.26 and a low target of $89.56, the average target price over the next 12 months is $141.41. Based on these targets, SPOT could surge 85.67% to reach the target high and fall by -26.83% to reach the target low. Reaching the average price target will result in a growth of 15.53% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. SPOT will report FY 2022 earnings on 02/08/2023. Analysts have provided yearly estimates in a range of $0.11 being high and -$2.81 being low. For SPOT, this leads to a yearly average estimate of -$1.53. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Spotify Technology S.A. surprised analysts by -$0.17 when it reported -$0.86 EPS against a consensus estimate of -$0.69. The surprise factor in the prior quarter was $0.49. Based on analyst estimates, the high estimate for the next quarter is $0.28 and the low estimate is -$1.49. The average estimate for the next quarter is thus -$0.80.